Jonathan Crane was a corrupt psychiatrist at Arkham Asylum, as well as a participant in organised crime activity in Gotham City. His activities led him to become an enemy of Batman.

Crane managed to develop a fear toxin after making contact with Ra's al Ghul and the League of Shadows. Using a rare blue flower that grew on the slopes of the Himalayas near to the League's headquarters, he created a substance that caused the subject great fear of everything around them. He experimented on the inmates of Arkham. Crane used Carmine Falcone, Gotham's head of organised crime, to smuggle the substance into the city, in exchange for Crane using his psychiatric credentials to declare any of Falcone's thugs insane once they were tried in court. He transferred them to his secure wing at Arkham where they enjoyed more luxurious conditions than in prison.

While testifying that Victor Zsasz, one of Falcone's men, was insane, Crane was approached by the assistant District Attorney Rachel Dawes. She commented on the high number of Falcone's associates that Crane had at Arkham, and implied that he was corrupt in his assessments. Crane responded by telling Carl Finch, Rachel's boss, to make sure that Dawes knew what accusations the DA office has authorised her to make. Crane then met with Carmine Falcone to discuss the latest shipment of drugs: Crane explained that the packets hidden inside toy bears went to the drug dealers, and those in toy rabbits went to the Crane's man in The Narrows. Crane explained that the less Falcone knew, the better.